Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
Kingsoft Cloud Announces Unaudited
Second Quarter 2026 Financial Results
Kingsoft Cloud Holdings Limited
(“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today
announced its unaudited financial results for the quarter ended June 30, 2026.
Mr.
Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented: “We are excited to deliver a quarter of both strong growth and profitability.
Gross billings from our AI cloud business grew 82% year-over-year, representing 56% of public cloud revenue, driven by incremental contributions
from our AI cloud infrastructure services as well as Model-as-a-Service (MaaS) offerings. Profitability-wise, we recorded positive operating
margin (GAAP) for the first time, and our adjusted operating profit margin increased significantly to reach 4.0%1, thanks to
our improved gross margin and operating efficiency. We remain committed to pursuing high-quality, sustainable growth strategy, deepening
collaboration with customers both within and beyond our ecosystem, and strengthening our market position.”
Ms.
Yi Li, Chief Financial Officer of Kingsoft Cloud, added, “We delivered a strong quarter, with total revenue reaching a record high
of RMB3,072.0 million, representing an increase of 30.8% year-over-year. Adjusted gross profit increased by 34.6% year-over-year to RMB471.7
million, with an adjusted gross margin of 15.4%2, an improvement from last quarter. We also reached breakeven on operating
profit (GAAP), with adjusted operating profit margin reaching 4.0%, demonstrating improving profitability thanks to AI demand tailwinds
and operational optimization. We remain committed to investing for sustainable long-term growth, with capital expenditures (including
capitalized assets through leasing arrangements) amounting to RMB3.3 billion in Q2, an increase from Q1.”
Second Quarter 2026 Financial
Results
Total Revenues reached
RMB3,072.0 million (US$452.83 million), increased by 30.8% year-over-year from RMB2,349.2 million in the same quarter of 2025,
and increased by 13.6% quarter-over-quarter from RMB2,703.7 million in the first quarter of 2026. The increase was mainly due to revenue
growth from AI-related customers, supported by continued upgrades to our AI infrastructure and product offerings.
Revenues from
public cloud services were RMB2,357.6 million (US$347.5 million), increased by 45.1% year-over-year from RMB1,625.3 million in the
same quarter of 2025 and increased by 18.1% quarter-over-quarter from RMB1,996.3 million last quarter. The increase was mainly
driven by growing demand for AI cloud services. AI cloud gross billings reached RMB1,327 million (US$195.6 million), while our other
public cloud services also maintained solid growth.
Revenues from enterprise
cloud services were RMB714.3 million (US$105.3 million), representing a year-over-year decrease of 1.3% from RMB723.9 million in the same
quarter of 2025 and a quarter-over-quarter increase of 1.0% from RMB707.4 million last quarter.
1 Our
operating profit margin was 0.7%.
2 Our
gross profit was RMB466.2 million, representing a year-over-year increase of 37.6%, with a gross margin of 15.2%.
3 This announcement contains translations of certain
Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted,
the translation of RMB into US$ has been made at RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026 as certified
for customs purposes by the Federal Reserve Bank of New York.
Cost of revenues was
RMB2,605.8 million (US$384.0 million), representing an increase of 29.6% from RMB2,010.4 million in the same quarter of 2025, which
was mainly due to our continued investment in AI computing resources. IDC costs increased by 23.3% year-over-year from RMB803.1
million to RMB990.1 million (US$146.0 million) this quarter, largely in line with our revenue expansion. Depreciation and
amortization costs increased from RMB552.0 million in the same quarter of 2025 to RMB963.8 million (US$142.0 million) this quarter.
The increase was mainly due to the depreciation of newly acquired and leased servers, and network equipment which were mainly
related to AI cloud business. Solution development and services costs increased by 3.9% year-over-year from RMB563.7 million in the
same quarter of 2025 to RMB585.7 million (US$86.3 million) this quarter. The increase was mainly due to the solution personnel
expansion. Fulfillment costs and other costs were RMB15.1 million (US$2.2 million) and RMB51.1 million (US$7.5 million) this
quarter.
Gross profit was
RMB466.2 million (US$68.7 million), representing an increase of 37.6% from RMB338.9 million in the same quarter of 2025. The
increase was mainly due to the expansion of our revenue scale, especially the intelligent computing services. Gross margin
was 15.2% in this quarter, compared with 14.4% in the same quarter of 2025 and 12.8% last quarter. The increase was mainly due to
higher profit contribution from our AI cloud business. Non-GAAP gross profit4 was RMB471.7 million (US$69.5
million), compared with RMB350.6 million in the same period in 2025. Non-GAAP gross margin4 was 15.4%, compared
with 14.9% in the same period in 2025.
Total operating expenses
were RMB443.2 million (US$65.3 million), decreased by 33.4% from RMB665.8 million in the same quarter of 2025 and decreased by 13.4% from
RMB511.9 million last quarter. Among which:
Selling and marketing expenses
were RMB113.1 million (US$16.7 million), decreased by 14.3% from RMB132.0 million in the same period in 2025 and decreased by 8.6% from
RMB123.8 million last quarter. The decrease was mainly due to the decrease of share-based compensation and personnel costs.
General and administrative
expenses were RMB140.2 million (US$20.6 million), decreased by 58.7% from RMB339.6 million in the same period in 2025 and decreased
by 28.0% from RMB194.8 million last quarter. The decrease was mainly due to the decrease of credit loss expenses and share-based compensation.
Research and development expenses
were RMB189.9 million (US$28.0 million), decreased by 2.3% from RMB194.3 million in the same period in 2025 and decreased by 1.8% from
RMB193.3 million last quarter. The year-over-year decrease was mainly due to the decrease of personnel costs and share-based compensation.
Operating profit was RMB23.0
million (US$3.4 million), compared with operating loss of RMB327.0 million in the same period in 2025 and operating loss of RMB166.1 million
last quarter. The year-over-year improvement was mainly due to the increase of revenue, while the sequential improvement was mainly due
to the impact of increase in gross profit. Non-GAAP operating profit5 was RMB124.0 million (US$18.3 million), compared
with operating loss of RMB166.4 million in the same period last year and operating loss of RMB59.8 million last quarter.
4 Non-GAAP gross profit is defined as gross profit
excluding share-based compensation expenses allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross
profit as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press
release.
5 Non-GAAP operating (loss) profit is defined as operating
(loss) profit excluding share-based compensation expenses and amortization of intangible assets and we define Non-GAAP operating (loss) profit
margin as Non-GAAP operating (loss) profit as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth
at the end of this press release.
Net loss was RMB93.0 million
(US$13.7 million), narrowed by 79.6% from RMB456.9 million in the same quarter of 2025 and narrowed by 72.9% from RMB343.7 million last
quarter. Non-GAAP net loss6 was RMB59.8 million (US$8.8 million), compared with RMB300.5 million in the same quarter
of 2025 and RMB237.1 million last quarter.
Non-GAAP EBITDA7
was RMB1,100.5 million (US$162.2 million), compared with RMB406.0 million in the same quarter of 2025 and RMB747.5 million last quarter.
Non-GAAP EBITDA margin was 35.8%, compared with 17.3% in the same quarter of 2025 and 27.6% last quarter.
Basic and diluted net loss
per share was RMB0.02 (US$0.00), compared with RMB0.11 in the same quarter of 2025 and RMB0.08 last quarter.
Cash and cash equivalents were
RMB4,674.3 million (US$688.9 million) as of June 30, 2026, compared with RMB6,018.0 million as of December 31, 2025. The decrease
was mainly due to the investment into the procurement of computing power equipment.
Outstanding ordinary shares
were 4,501,784,337 as of June 30, 2026, equivalent to about 300,118,956 ADSs.
Conference Call Information
Kingsoft Cloud’s management will host an
earnings conference call on Wednesday, August 19, 2026 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same
day).
Participants can register for the conference call
by navigating to https://register-conf.media-server.com/register/BIf61186884fdb445fabf9794d01884399. Once preregistration has been completed,
participants will receive dial-in numbers, direct event passcode, and a unique access PIN.
To join the conference, simply dial the number
in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.
Additionally, a live and archived webcast of the
conference call will also be available on the Company’s investor relations website at http://ir.ksyun.com.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated
financial information is prepared in conformity with accounting principles generally accepted in the United States of America
(“U.S. GAAP”). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit,
Non-GAAP gross margin, Non-GAAP operating (loss) profit, Non-GAAP operating (loss) profit margin, Non-GAAP EBITDA, Non-GAAP EBITDA
margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The
presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross profit as gross profit excluding
share-based compensation expenses allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as
a percentage of revenues. We define Non-GAAP operating (loss) profit as operating (loss) profit excluding share-based compensation
expenses and amortization of intangible assets and we define Non-GAAP operating (loss) profit margin as Non-GAAP operating (loss)
profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation expenses and foreign
exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP
EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and
we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures
because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the
use of these non-GAAP measures facilitates investors’ assessment of our operating performance.
6 Non-GAAP net loss is defined as net loss excluding share-based
compensation expenses and foreign exchange loss (gain), and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of
revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.
7 Non-GAAP EBITDA is defined as Non-GAAP net loss excluding
interest income, interest expense, income tax expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP
EBITDA as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.
These non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools.
One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that
affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited.
We compensate for these limitations by reconciling
these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our
performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information
This press release contains translations of certain
RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from
RMB to U.S. dollars, in this press release, were made at a rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30,
2026 as certified for customs purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This announcement contains forward-looking statements.
These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates” and similar statements.
Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud’s strategic
and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in
its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements
that are not historical facts, including but not limited to statements about Kingsoft Cloud’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud’s goals
and strategies; Kingsoft Cloud’s future business development, results of operations and financial condition; relevant government
policies and regulations relating to Kingsoft Cloud’ s business and industry; the expected growth of the cloud service market in
China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud’s ability to
monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere
generally; China’s political or social conditions and assumptions underlying or related to any of the foregoing. Further information
regarding these and other risks is included in Kingsoft Cloud’s filings with the SEC. All information provided in this press release
and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
About Kingsoft Cloud Holdings Limited
Kingsoft Cloud Holdings Limited (NASDAQ: KC and
HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based
on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment
and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals.
For more information, please visit: http://ir.ksyun.com.
For investor and media inquiries, please contact:
Kingsoft Cloud Holdings Limited
Investor Relations
Email: ksc-ir@kingsoft.com
KINGSOFT CLOUD HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands)
| | |
Dec 31,
2025 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
US$ | |
| ASSETS | |
| | |
| | |
| |
| Current assets: | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 6,018,043 | | |
| 4,674,330 | | |
| 688,911 | |
| Restricted cash | |
| 99,194 | | |
| 54,963 | | |
| 8,101 | |
| Accounts receivable, net | |
| 1,740,472 | | |
| 2,433,175 | | |
| 358,606 | |
| Prepayments and other assets | |
| 2,592,314 | | |
| 3,116,516 | | |
| 459,317 | |
| Amounts due from related parties | |
| 573,396 | | |
| 702,453 | | |
| 103,529 | |
| Total current assets | |
| 11,023,419 | | |
| 10,981,437 | | |
| 1,618,464 | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property and equipment, net | |
| 10,094,870 | | |
| 13,725,293 | | |
| 2,022,858 | |
| Intangible assets, net | |
| 532,769 | | |
| 445,819 | | |
| 65,706 | |
| Goodwill | |
| 4,605,724 | | |
| 4,605,724 | | |
| 678,800 | |
| Prepayments and other assets | |
| 139,836 | | |
| 419,048 | | |
| 61,760 | |
| Equity investments | |
| 234,166 | | |
| 336,495 | | |
| 49,593 | |
| Operating lease right-of-use assets | |
| 98,405 | | |
| 189,754 | | |
| 27,966 | |
| Total non-current assets | |
| 15,705,770 | | |
| 19,722,133 | | |
| 2,906,683 | |
| Total assets | |
| 26,729,189 | | |
| 30,703,570 | | |
| 4,525,147 | |
| | |
| | | |
| | | |
| | |
| LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payable | |
| 2,014,453 | | |
| 2,425,273 | | |
| 357,441 | |
| Accrued expenses and other current liabilities | |
| 3,222,429 | | |
| 3,792,735 | | |
| 558,981 | |
| Short-term borrowings | |
| 3,348,279 | | |
| 3,256,926 | | |
| 480,011 | |
| Income tax payable | |
| 73,310 | | |
| 67,751 | | |
| 9,985 | |
| Amounts due to related parties | |
| 721,932 | | |
| 1,221,055 | | |
| 179,961 | |
| Current operating lease liabilities | |
| 40,941 | | |
| 96,996 | | |
| 14,295 | |
| Total current liabilities | |
| 9,421,344 | | |
| 10,860,736 | | |
| 1,600,674 | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Long-term borrowings | |
| 3,023,538 | | |
| 3,424,480 | | |
| 504,706 | |
| Amounts due to related parties | |
| 2,212,325 | | |
| 3,217,952 | | |
| 474,267 | |
| Deferred tax liabilities | |
| 61,914 | | |
| 61,273 | | |
| 9,031 | |
| Other liabilities | |
| 2,645,895 | | |
| 4,161,172 | | |
| 613,282 | |
| Non-current operating lease liabilities | |
| 51,139 | | |
| 83,245 | | |
| 12,269 | |
| Total non-current liabilities | |
| 7,994,811 | | |
| 10,948,122 | | |
| 1,613,555 | |
| Total liabilities | |
| 17,416,155 | | |
| 21,808,858 | | |
| 3,214,229 | |
| Shareholders’ equity: | |
| | | |
| | | |
| | |
| Ordinary shares | |
| 30,888 | | |
| 30,888 | | |
| 4,552 | |
| Treasury shares | |
| (31,068 | ) | |
| (6,222 | ) | |
| (917 | ) |
| Additional paid-in capital | |
| 24,073,006 | | |
| 24,170,141 | | |
| 3,562,238 | |
| Statutory reserves funds | |
| 51,661 | | |
| 51,661 | | |
| 7,614 | |
| Accumulated deficit | |
| (15,247,868 | ) | |
| (15,684,766 | ) | |
| (2,311,648 | ) |
| Accumulated other comprehensive income | |
| 440,407 | | |
| 336,801 | | |
| 49,638 | |
| Total Kingsoft Cloud Holdings Limited shareholders’ equity | |
| 9,317,026 | | |
| 8,898,503 | | |
| 1,311,477 | |
| Non-controlling interests | |
| (3,992 | ) | |
| (3,791 | ) | |
| (559 | ) |
| Total equity | |
| 9,313,034 | | |
| 8,894,712 | | |
| 1,310,918 | |
| Total liabilities, non-controlling interests and shareholders’ equity | |
| 26,729,189 | | |
| 30,703,570 | | |
| 4,525,147 | |
KINGSOFT CLOUD HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(All amounts in thousands, except for share and per share data)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Revenues: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Public cloud services | |
| 1,625,309 | | |
| 1,996,301 | | |
| 2,357,617 | | |
| 347,470 | | |
| 2,978,788 | | |
| 4,353,918 | | |
| 641,688 | |
| Enterprise cloud services | |
| 723,918 | | |
| 707,431 | | |
| 714,349 | | |
| 105,282 | | |
| 1,340,416 | | |
| 1,421,780 | | |
| 209,544 | |
| Total revenues | |
| 2,349,227 | | |
| 2,703,732 | | |
| 3,071,966 | | |
| 452,752 | | |
| 4,319,204 | | |
| 5,775,698 | | |
| 851,232 | |
| Cost of revenues | |
| (2,010,370 | ) | |
| (2,357,984 | ) | |
| (2,605,757 | ) | |
| (384,041 | ) | |
| (3,662,041 | ) | |
| (4,963,741 | ) | |
| (731,565 | ) |
| Gross profit | |
| 338,857 | | |
| 345,748 | | |
| 466,209 | | |
| 68,711 | | |
| 657,163 | | |
| 811,957 | | |
| 119,667 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| (131,996 | ) | |
| (123,776 | ) | |
| (113,130 | ) | |
| (16,673 | ) | |
| (276,334 | ) | |
| (236,906 | ) | |
| (34,916 | ) |
| General and administrative expenses | |
| (339,563 | ) | |
| (194,765 | ) | |
| (140,169 | ) | |
| (20,658 | ) | |
| (521,562 | ) | |
| (334,934 | ) | |
| (49,363 | ) |
| Research and development expenses | |
| (194,285 | ) | |
| (193,315 | ) | |
| (189,911 | ) | |
| (27,989 | ) | |
| (420,455 | ) | |
| (383,226 | ) | |
| (56,481 | ) |
| Total operating expenses | |
| (665,844 | ) | |
| (511,856 | ) | |
| (443,210 | ) | |
| (65,320 | ) | |
| (1,218,351 | ) | |
| (955,066 | ) | |
| (140,760 | ) |
| Operating (loss) profit | |
| (326,987 | ) | |
| (166,108 | ) | |
| 22,999 | | |
| 3,391 | | |
| (561,188 | ) | |
| (143,109 | ) | |
| (21,093 | ) |
| Interest income | |
| 11,520 | | |
| 32,030 | | |
| 25,920 | | |
| 3,820 | | |
| 16,466 | | |
| 57,950 | | |
| 8,541 | |
| Interest expense | |
| (124,669 | ) | |
| (153,595 | ) | |
| (166,766 | ) | |
| (24,578 | ) | |
| (207,566 | ) | |
| (320,361 | ) | |
| (47,215 | ) |
| Foreign exchange (loss) gain | |
| (39,526 | ) | |
| (44,006 | ) | |
| 24,106 | | |
| 3,553 | | |
| (30,475 | ) | |
| (19,900 | ) | |
| (2,933 | ) |
| Other gain (loss), net | |
| 1,620 | | |
| (6,588 | ) | |
| 17,521 | | |
| 2,582 | | |
| 4,864 | | |
| 10,933 | | |
| 1,611 | |
| Other income (expense), net | |
| 23,522 | | |
| (372 | ) | |
| (250 | ) | |
| (37 | ) | |
| 16,510 | | |
| (622 | ) | |
| (92 | ) |
| Loss before income taxes | |
| (454,520 | ) | |
| (338,639 | ) | |
| (76,470 | ) | |
| (11,269 | ) | |
| (761,389 | ) | |
| (415,109 | ) | |
| (61,181 | ) |
| Income tax expense | |
| (2,343 | ) | |
| (5,081 | ) | |
| (16,507 | ) | |
| (2,433 | ) | |
| (11,584 | ) | |
| (21,588 | ) | |
| (3,182 | ) |
| Net loss | |
| (456,863 | ) | |
| (343,720 | ) | |
| (92,977 | ) | |
| (13,702 | ) | |
| (772,973 | ) | |
| (436,697 | ) | |
| (64,363 | ) |
| Less: net income (loss) attributable to non-controlling interests | |
| 602 | | |
| 100 | | |
| 101 | | |
| 15 | | |
| (1,582 | ) | |
| 201 | | |
| 30 | |
| Net loss attributable to Kingsoft Cloud Holdings Limited | |
| (457,465 | ) | |
| (343,820 | ) | |
| (93,078 | ) | |
| (13,717 | ) | |
| (771,391 | ) | |
| (436,898 | ) | |
| (64,393 | ) |
| Net loss per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic and diluted | |
| (0.11 | ) | |
| (0.08 | ) | |
| (0.02 | ) | |
| (0.00 | ) | |
| (0.20 | ) | |
| (0.10 | ) | |
| (0.01 | ) |
| Shares used in the net loss per share computation: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic and diluted | |
| 4,009,119,198 | | |
| 4,555,310,453 | | |
| 4,562,509,396 | | |
| 4,562,509,396 | | |
| 3,869,381,978 | | |
| 4,558,929,811 | | |
| 4,558,929,811 | |
| Other comprehensive income (loss), net of tax of nil: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Foreign currency translation adjustments | |
| 43,174 | | |
| (34,472 | ) | |
| (69,134 | ) | |
| (10,189 | ) | |
| 50,918 | | |
| (103,606 | ) | |
| (15,270 | ) |
| Comprehensive loss | |
| (413,689 | ) | |
| (378,192 | ) | |
| (162,111 | ) | |
| (23,891 | ) | |
| (722,055 | ) | |
| (540,303 | ) | |
| (79,633 | ) |
| Less: Comprehensive income (loss) attributable to non-controlling interests | |
| 606 | | |
| 100 | | |
| 101 | | |
| 15 | | |
| (1,594 | ) | |
| 201 | | |
| 30 | |
| Comprehensive loss attributable to Kingsoft Cloud Holdings Limited | |
| (414,295 | ) | |
| (378,292 | ) | |
| (162,212 | ) | |
| (23,906 | ) | |
| (720,461 | ) | |
| (540,504 | ) | |
| (79,663 | ) |
KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Gross profit | |
338,857 | | |
345,748 | | |
466,209 | | |
68,711 | | |
657,163 | | |
811,957 | | |
119,667 | |
| Adjustments: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| – Share-based compensation expenses (allocated in cost of revenues) | |
11,712 | | |
5,658 | | |
5,503 | | |
811 | | |
21,077 | | |
11,161 | | |
1,645 | |
| Adjusted gross profit (Non-GAAP Financial Measure) | |
350,569 | | |
351,406 | | |
471,712 | | |
69,522 | | |
678,240 | | |
823,118 | | |
121,312 | |
KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | |
| Gross margin | |
14.4 | % | |
12.8 | % | |
15.2 | % | |
15.2 | % | |
14.1 | % |
| Adjusted gross margin (Non-GAAP Financial Measure) | |
14.9 | % | |
13.0 | % | |
15.4 | % | |
15.7 | % | |
14.3 | % |
KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Net Loss | |
(456,863 | ) | |
(343,720 | ) | |
(92,977 | ) | |
(13,702 | ) | |
(772,973 | ) | |
(436,697 | ) | |
(64,363 | ) |
| Adjustments: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| – Share-based compensation expenses | |
116,856 | | |
62,571 | | |
57,260 | | |
8,439 | | |
251,467 | | |
119,831 | | |
17,661 | |
| – Foreign exchange loss (gain) | |
39,526 | | |
44,006 | | |
(24,106 | ) | |
(3,553 | ) | |
30,475 | | |
19,900 | | |
2,933 | |
| Adjusted net loss (Non-GAAP Financial Measure) | |
(300,481 | ) | |
(237,143 | ) | |
(59,823 | ) | |
(8,816 | ) | |
(491,031 | ) | |
(296,966 | ) | |
(43,769 | ) |
| Adjustments: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| – Interest income | |
(11,520 | ) | |
(32,030 | ) | |
(25,920 | ) | |
(3,820 | ) | |
(16,466 | ) | |
(57,950 | ) | |
(8,541 | ) |
| – Interest expense | |
124,669 | | |
153,595 | | |
166,766 | | |
24,578 | | |
207,566 | | |
320,361 | | |
47,215 | |
| – Income tax expense | |
2,343 | | |
5,081 | | |
16,507 | | |
2,433 | | |
11,584 | | |
21,588 | | |
3,182 | |
| – Depreciation and amortization | |
591,021 | | |
858,003 | | |
1,002,924 | | |
147,813 | | |
1,012,922 | | |
1,860,927 | | |
274,267 | |
| Adjusted EBITDA (Non-GAAP Financial Measure) | |
406,032 | | |
747,506 | | |
1,100,454 | | |
162,188 | | |
724,575 | | |
1,847,960 | | |
272,354 | |
| – Gain on disposal of property and equipment | |
(5,708 | ) | |
- | | |
(35,024 | ) | |
(5,162 | ) | |
(7,818 | ) | |
(35,024 | ) | |
(5,162 | ) |
| Excluding gain on disposal of property and equipment, normalized Adjusted EBITDA | |
400,324 | | |
747,506 | | |
1,065,430 | | |
157,026 | | |
716,757 | | |
1,812,936 | | |
267,192 | |
KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | | |
RMB | | |
RMB | | |
US$ | |
| Operating (loss) profit | |
(326,987 | ) | |
(166,108 | ) | |
22,999 | | |
3,391 | | |
(561,188 | ) | |
(143,109 | ) | |
(21,093 | ) |
| Adjustments: | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| – Share-based compensation expenses | |
116,856 | | |
62,571 | | |
57,260 | | |
8,439 | | |
251,467 | | |
119,831 | | |
17,661 | |
| – Amortization of intangible assets | |
43,751 | | |
43,720 | | |
43,702 | | |
6,441 | | |
87,532 | | |
87,422 | | |
12,884 | |
| Adjusted operating (loss) profit (Non-GAAP Financial Measure) | |
(166,380 | ) | |
(59,817 | ) | |
123,961 | | |
18,271 | | |
(222,189 | ) | |
64,144 | | |
9,452 | |
| – Gain on disposal of property and equipment | |
(5,708 | ) | |
- | | |
(35,024 | ) | |
(5,162 | ) | |
(7,818 | ) | |
(35,024 | ) | |
(5,162 | ) |
| Excluding gain on disposal of property and equipment, normalized Adjusted operating (loss) profit | |
(172,088 | ) | |
(59,817 | ) | |
88,937 | | |
13,109 | | |
(230,007 | ) | |
29,120 | | |
4,290 | |
KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2025 | | |
Jun 30,
2026 | |
| Net loss margin | |
-19.4 | % | |
-12.7 | % | |
-3.0 | % | |
-17.9 | % | |
-7.6 | % |
| Adjusted net loss margin (Non-GAAP Financial Measure) | |
-12.8 | % | |
-8.8 | % | |
-1.9 | % | |
-11.4 | % | |
-5.1 | % |
| Adjusted EBITDA margin (Non-GAAP Financial Measure) | |
17.3 | % | |
27.6 | % | |
35.8 | % | |
16.8 | % | |
32.0 | % |
| Normalized Adjusted EBITDA margin | |
17.0 | % | |
27.6 | % | |
34.7 | % | |
16.6 | % | |
31.4 | % |
| Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) | |
-7.1 | % | |
-2.2 | % | |
4.0 | % | |
-5.1 | % | |
1.1 | % |
| Normalized Adjusted operating (loss) profit margin | |
-7.3 | % | |
-2.2 | % | |
2.9 | % | |
-5.3 | % | |
0.5 | % |
| KINGSOFT CLOUD HOLDINGS LIMITED |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (All amounts in thousands) |
| | |
Three Months Ended | |
| | |
Jun 30,
2025 | | |
Mar 31,
2026 | | |
Jun 30,
2026 | | |
Jun 30,
2026 | |
| | |
RMB | | |
RMB | | |
RMB | | |
US$ | |
| Net cash generated from operating activities | |
1,460,134 | | |
533,978 | | |
2,850,866 | | |
420,166 | |
| Net cash used in investing activities | |
(887,832 | ) | |
(1,630,049 | ) | |
(2,912,812 | ) | |
(429,295 | ) |
| Net cash generated from (used in) financing activities | |
2,552,561 | | |
7,606 | | |
(109,637 | ) | |
(16,158 | ) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | |
5,921 | | |
(78,078 | ) | |
(49,818 | ) | |
(7,343 | ) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | |
3,130,784 | | |
(1,166,543 | ) | |
(221,401 | ) | |
(32,630 | ) |
| Cash, cash equivalents and restricted cash at beginning of period | |
2,386,344 | | |
6,117,237 | | |
4,950,694 | | |
729,642 | |
| Cash, cash equivalents and restricted cash at end of period | |
5,517,128 | | |
4,950,694 | | |
4,729,293 | | |
697,012 | |
